2. In this connection, the Government of India has decided to widen the scheme to include certain items covering the Engineering Sectors. The Scheme will be made available to the Engineering Sector on pre and post shipment export credit on the same terms and conditions as available to other sectors. A list of 134 tariff lines of Engineering products approved for inclusion in Interest Subvention for the period January 1, 2013 to March 31, 2013 is enclosed to this circular (Annex I).

3. Further, it has also been decided to extend the 2% Rupee Export Credit Interest Rate Subvention Scheme for the following sectors w.e.f. April 1, 2013 to March 31, 2014 on the same terms and conditions:

Handicrafts

Carpet

Handlooms

Small and Medium Enterprises (SMEs) (as defined in Annex II)

Readymade Garments

Processed Agriculture Products

Sports Goods

Toys

134 Tariff lines on Engineering Goods (as per Annex I).

4. Accordingly, banks may reduce the interest rate chargeable to the exporters as per Base Rate system in the above mentioned sectors eligible for export credit subvention by the amount of subvention available subject to a floor rate of 7%. Banks may ensure to pass on the benefit of 2% interest subvention completely to the eligible exporters.

5. A directive No. DBOD.Dir.(Exp).BC.No.69/04.02.01/2012-13 dated January 14, 2013 issued in this regard is enclosed.

6. The procedure for claiming subvention is as follows:

The amount of subvention would be reimbursed on the basis of claim submitted as at the end of respective quarters in the format enclosed.

The amount of subvention will be calculated on the amount of export credit from the date of disbursement
a. up to the date of repayment; orb. up to the date beyond which the outstanding export credit becomes overdue.

The claims should be accompanied by an External Auditor’s Certificate certifying that the claims for subvention of Rs…………….for the respective quarter is true and correct. Settlement of the claim will be done only on receipt of this certificate.

Claims may be submitted in the format given in Annex III to the Chief General Manager-in-Charge, Department of Banking Operations and Development, Reserve Bank of India, Central Office, 13th floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001.

In case no interest subvention is paid for any quarter/s, a NIL statement may be submitted.

Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:

i) A micro enterprise is an enterprise where investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722(E) dated October 5, 2006 does not exceed Rs.25 lakh;

ii) A small enterprise is an enterprise where the investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722(E) dated October 5, 2006) is more than Rs.25 lakh but does not exceed Rs.5 crore; and

iii) A medium enterprise is an enterprise where the investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722(E) dated October 5, 2006) is more than Rs.5 crore but does not exceed Rs.10 crore.

Annex III

Rupee Export Credit for the period from January 1, 2013 to March 31, 2014

Claim for the quarter ended……………

Category of Exporters

Total Rupee export credit granted

Amount of subvention claimed (rounded off to the nearest rupee)

1. Handicrafts

2. Carpet

3. Handlooms

4. Small and Medium Enterprises (SMEs)*

5. Readymade Garments

6. Processed Agriculture Products

7. Sports Goods

8. Toys

9. 134 Tariff lines on Engineering Goods as enclosed to their letter

Total

*As defined in the Annex II.

We certify having charged interest rates on the above loans at or above Base Rate by way of Rupee export credit to the eligible exporters as stated in the RBI circular No.DBOD.Dir.(Exp). BC.No.70 /04.02.001/2012-13 dated January 14, 2013 during the period ………… to ……………

Dated : _________________

(Name and stamp of Authorised Signatory)

DBOD.Dir.(Exp).BC.No.69/04.02.001/2012-13

January 14, 2013

Rupee Export Credit – Interest Subvention

In exercise of the powers conferred by Sections 21 and 35 A of the Banking Regulation Act, 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, in partial modification of directive DBOD.Dir.(Exp).BC.No.111 / 04.02.001 /2011-12 dated June 19, 2012, hereby notifies as under:

It has been decided to widen the scheme to include certain items covering the Engineering Sectors. The Scheme will be made available to the Engineering Sector on pre and post shipment export credit on the same terms and conditions as available to other sectors. A list of 134 tariff lines of Engineering products approved for inclusion in Interest Subvention for the period January 1, 2013 to March 31, 2013 is enclosed as Annex I.

Further, it has also been decided to extend the 2% Rupee Export Credit Interest Rate Subvention Scheme for the following sectors w.e.f. April 1, 2013 to March 31, 2014 on the same terms and conditions: